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Netflix inc Q2 financial report was quite positive with revenue growth of $6.15 billion and a 10.9 million paid subscribers increase. The revenue beats earlier expectations of about $6.0 billion but failed an expected EPS of $1.81 per share to be at $1.59 per share. These numbers might look flawed but not as much as Netflix Q3 forecast which has had more effect on its shares since the 24 hours.
Actual Netflix reports
- $6.15 billion in Q2 revenue: an improvement from the $4.92 billion of the same quarter last year.
- Net income of $720 million, or $1.59 a share
Hours later, the same day, NLFX share went soaring downwards to about 9% Thursday, July 16. NFLX market valuation stepped up to $231 billion in the last months and admittedly, Netflix executives said it was likely a push from underlying adoption. Until a few hours ago, the Netflix shares had appreciated about 64% trading at $479.
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However, investors panicked with a forecast and a Netflix statement regarding its Q3 outlook which is:
- $6.33 billion in revenue
- Net income of $954 million or $2.09 in share
- 2.5 million net new subscribers in Q3
This dents the future for investors who it appears rather preemptive since the company has been in a state of long rest on its original production. New Co-CEO Ted Sarandos said more original content which is already in the work – most recently are new additions from films houses like EbonyLife in Nigeria – will be available in 2021.
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